ASX:MFG

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Executive Summary

Magellan Financial Group Limited is a publicly owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Magellan Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MFG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

MFG

-0.2%

AU Capital Markets

1.7%

AU Market


1 Year Return

16.2%

MFG

-0.9%

AU Capital Markets

-1.6%

AU Market

Return vs Industry: MFG exceeded the Australian Capital Markets industry which returned -0.9% over the past year.

Return vs Market: MFG exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

MFGIndustryMarket
7 Day-2.3%-0.2%1.7%
30 Day5.9%4.3%9.5%
90 Day1.3%3.8%9.2%
1 Year19.9%16.2%2.5%-0.9%1.8%-1.6%
3 Year175.2%142.6%39.1%22.5%24.8%9.2%
5 Year206.4%150.9%72.7%37.8%56.1%25.0%

Long-Term Price Volatility Vs. Market

How volatile is Magellan Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magellan Financial Group undervalued compared to its fair value and its price relative to the market?

27.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFG (A$60.98) is trading above our estimate of fair value (A$52.39)

Significantly Below Fair Value: MFG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFG is poor value based on its PE Ratio (27.9x) compared to the AU Capital Markets industry average (24.3x).

PE vs Market: MFG is poor value based on its PE Ratio (27.9x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: MFG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: MFG is overvalued based on its PB Ratio (10.6x) compared to the AU Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Magellan Financial Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFG's forecast earnings growth (11.2% per year) is above the savings rate (2.3%).

Earnings vs Market: MFG's earnings (11.2% per year) are forecast to grow slower than the Australian market (17.8% per year).

High Growth Earnings: MFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFG's revenue (8.1% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: MFG's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFG's Return on Equity is forecast to be very high in 3 years time (52.9%).


Next Steps

Past Performance

How has Magellan Financial Group performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFG has high quality earnings.

Growing Profit Margin: MFG's current net profit margins (57%) are lower than last year (61.2%).


Past Earnings Growth Analysis

Earnings Trend: MFG's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: MFG's earnings growth over the past year (5.1%) is below its 5-year average (19.8% per year).

Earnings vs Industry: MFG earnings growth over the past year (5.1%) exceeded the Capital Markets industry -13.4%.


Return on Equity

High ROE: MFG's Return on Equity (37.9%) is considered high.


Next Steps

Financial Health

How is Magellan Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: MFG's short term assets (A$577.1M) exceed its short term liabilities (A$58.7M).

Long Term Liabilities: MFG's short term assets (A$577.1M) exceed its long term liabilities (A$19.2M).


Debt to Equity History and Analysis

Debt Level: MFG is debt free.

Reducing Debt: MFG has not had any debt for past 5 years.

Debt Coverage: MFG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MFG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Magellan Financial Group current dividend yield, its reliability and sustainability?

3.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFG's dividend (3.52%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: MFG's dividend (3.52%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


Stability and Growth of Payments

Stable Dividend: MFG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MFG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.5%), MFG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFG's dividends in 3 years are not forecast to be well covered by earnings (90.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Brett Cairns

2.08yrs

Tenure

AU$1,795,102

Compensation

Dr. Brett Peter Cairns, Ph.D., is Chief Executive Officer and Managing Director of Magellan Financial Group Limited since October 5, 2018. Dr. Cairns served as an Executive Chairman of Magellan Financial G...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD1.32M) is below average for companies of similar size in the Australian market ($USD2.52M).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hamish Douglass
Chairman & Chief Investment Officer2.08yrsAU$6.04m12.32%
A$ 1.4b
Brett Cairns
CEO, MD & Executive Director2.08yrsAU$1.80m0.62%
A$ 69.1m
Kirsten Morton
Chief Financial Officerno dataAU$1.09m0.010%
A$ 1.1m
Marcia Venegas
Head of Risk3.75yrsAU$819.66k0.0026%
A$ 285.5k
Craig Wright
Head of Governance & Advisory5.33yrsAU$917.19k0.010%
A$ 1.1m
Kris Webster
Head of Technologyno datano datano data
Sarah Thorne
Investor Relationsno datano datano data
Leo Quintana
Chief Legal Officerno dataAU$204.69kno data
Gerald Stack
Head of Investments4.25yrsAU$3.83mno data
Nikki Thomas
Head of Research & Portfolio Manager5.92yrsno datano data
Adam Smith
Head of Tradingno datano datano data
Alan Pullen
Head of Financials & Portfolio Manager4.25yrsno datano data

4.3yrs

Average Tenure

Experienced Management: MFG's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hamish Douglass
Chairman & Chief Investment Officer2.08yrsAU$6.04m12.32%
A$ 1.4b
Brett Cairns
CEO, MD & Executive Director2.08yrsAU$1.80m0.62%
A$ 69.1m
Robert Fraser
Independent Non-Executive Director6.58yrsAU$141.04k0.27%
A$ 30.4m
Paul Lewis
Non-Executive Director13.92yrsAU$82.40k0.33%
A$ 36.4m
Stuart Stuckey
Executive Director of Pengana Capital Limitedno datano datano data
Hamish McLennan
Non-Executive Independent Deputy Chairman1.42yrsAU$112.26k0.057%
A$ 6.4m
John Eales
Non-Executive Director3.33yrsAU$116.00k0.042%
A$ 4.7m
Karen Phin
Non-Executive Director6.58yrsAU$96.78k0.049%
A$ 5.4m

6.6yrs

Average Tenure

54yo

Average Age

Experienced Board: MFG's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MFG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Financial Group Limited
  • Ticker: MFG
  • Exchange: ASX
  • Founded: 2004
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$11.152b
  • Shares outstanding: 183.64m
  • Website: https://www.magellangroup.com.au

Number of Employees


Location

  • Magellan Financial Group Limited
  • MLC Centre
  • Level 36
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2004
NNABST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2004
MFGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2004
NNADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004

Biography

Magellan Financial Group Limited is a publicly owned investment manager. It invests in global equities and global listed infrastructure markets across the globe. Magellan Financial Group Limited founded in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:03
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.